NHS sells off land for low-cost housing

More than 100 surplus National Health Service sites will be used to build about 15,000 new homes under a groundbreaking agreement, the Government said yesterday.

More than 100 surplus National Health Service sites will be used to build about 15,000 new homes under a groundbreaking agreement, the Government said yesterday.

The NHS will get £400m from the transfer of the land to the Office of the Deputy Prime Minister, headed by John Prescott, while NHS workers stand to benefit because 5,000 of the properties will be low-cost homes for key staff, such as nurses, police and teachers.

The 1,650 hectares of land involved, much of it in London and the South-east, is equal to the size of the London borough of Hammersmith and Fulham. The deal between the two departments came after the NHS scrapped plans to sell off NHS Estates, which has the largest property portfolio in Europe, under a public private partnership.

John Reid, the Health Secretary, said: "The receipts from the transfer will be transferred to the NHS and used to fund buildings and equipment." He added: "Staff are the public sector's greatest asset and it is vital that we work across government departments to provide them with the opportunity to live and work where they choose and where the need to recruit is the greatest."

The land will be sold on to housing associations or developers. Some buildings could be knocked down to allow redevelopment of the site; others could be converted into flats and or family dwellings.

Mr Prescott said: "This deal shows our determination to deliver more affordable homes where they are needed most, especially for key workers and young families.

"It will unlock major brownfield sites, secure more than 15,000 new homes, and kick-start regeneration as part of a comprehensive programme to create thriving and sustainable communities."

Selling off the land could save the NHS £60m a year in running costs.

Tim Yeo, the shadow Health Secretary, welcomed the fact more affordable housing would be built and that the money raised would be given to the NHS, but said he was "fearful that it will be wasted".